Work is underway to upgrade a notorious part of southeast Queensland's M1 motorway in a combined funding effort by the state and federal governments.
Construction of an upgrade at the M1 and Gateway motorway merge at Underwood, a major bottleneck on the way from Brisbane to Gold Coast, has begun with engineering firm Lendlease winning the construction contract.
The project will cost between $170-$196 million with the federal government providing $115 million of the funds.
The state Labor government had initially demanded an 80-20 split while the Commonwealth initially insisted the project be jointly funded on a 50-50 basis.
Federal Infrastructure Minister Paul Fletcher admitted there had been "a bit of to-ing and fro-ing" between the two governments to get to this stage.
It's expected the project will take up to two years to complete, but Mr Fletcher said the project's importance to southeast Queensland residents couldn't be understated.
"It will relieve congestion. It will help people get home to their families more quickly," he said.
Premier Annastacia Palaszczuk says Wednesday's announcement was an important step to solving the frustrating congestion issues for motorists.
"This is going to mean better travel times for families and commuters living in this area," Ms Palaszczuk said.
"We know how important this upgrade is for the M1."
Queensland Roads Minister Mark Bailey said the area had long been identified as a "major bottleneck" for the motorway.
"It's well known the merge starts to grind to a halt before three o'clock in the afternoon," Mr Bailey said.
"This will be a major unlocking of this bottleneck ... everybody knows this needs dealing with, it's been obvious for some time."
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